A forensic accountant is generally an accountant with expertise in detecting financial fraud or manipulation in personal and business tax returns, bank accounts, investment accounts, retirement accounts, broker accounts, offshore accounts, cash, cryptocurrency, jewels, art, cars, yachts, airplanes, real estate, life insurance policies, and related financial documents. This financial investigation work is often referred to as tracing, financial tracing, asset tracing, or forensic accounting, and generally involves “following the money” by tracing a piece of financial information or data back to its source.

In divorce litigation—and especially in high-asset or high-net-worth divorces in which there is significant marital or community property—any financial manipulation or fraud of personal or business finances may have a significant effect on the marital or community property that is available for division, and on spousal support and child support payment amounts. One or both spouses in a divorce may hire a forensic accountant to discover any hidden assets or manipulated financial documents that may prevent the court from having an accurate accounting of the marital or community property assets and the spouses’ incomes.

In South Dakota, forensic accounting is a specialized field where accountants use their expertise to uncover financial fraud and manipulation within various financial documents and assets. This practice is particularly relevant in divorce litigation, especially in cases involving high-net-worth individuals where accurate determination of marital assets is crucial for equitable division. South Dakota, like other states, allows for the equitable distribution of marital property in a divorce. Forensic accountants can be hired by either spouse to conduct financial investigations, often referred to as tracing or asset tracing, to ensure that all assets are properly disclosed and valued. The findings of a forensic accountant can significantly impact the division of assets, as well as spousal and child support determinations, by revealing any hidden assets or discrepancies in reported finances. While South Dakota does not have community property laws like some states, the role of a forensic accountant in ensuring fair division of marital property is equally important under the state's equitable distribution laws.